2:1 Bonus Issue + 1:5 Split On July 28: Multibagger Engineering Stock With 28.40% RoE, In Focus; Eligibility?

Multibagger stock GTV Engineering is going to turn ex-date for two major rewards such as stock split and bonus issue. The penny stock has a stable return on equity, and has given triple-digit returns of 163% year-to-date. GTV Engineering stock price of Rs 1,368 is set for major adjustments next week on BSE.

GTV Engineering Ltd Share Price:

Last week, on July 25, GTV Engineering stock froze at 2% lower circuit to Rs 1386.20 apiece, with market cap of Rs 433.03 crore. This was second consecutive lower circuit by GTV. The stock was also at 2% lower limit on July 24.

Lower circuits generally mean that there are several sellers in a listed stock but no buyers. However, the selloffs appeared in GTV due to investors booking profits as the stock touched a new 52-week high of Rs 1,443.30 apiece on July 23.

GTV is a multibagger in 2025. Despite the latest selling pressure, the stock's weekly performance is higher by nearly 6%. In a month, the stock zoomed by 31%, while in six months, the gains are around a whopping 95%. Year-to-date, the stock skyrocketed by a massive 163.16%.

Currently, GTV has a return on equity of 28.40%.

GTV Engineering Stock Split:

The company has declared a stock split in the ratio of 1:5, which means that 1 existing equity share will be split into five small shares. The face value will be trimmed to Rs 2 each from Rs 10 each.

Share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.

GTV Engineering Bonus Issue:

Further, the company has declared a bonus issue of a 2:1 ratio. This means that the company will issue 2 free shares on the existing 1 equity share, while the face value will remain the same, Rs 2 each. This also means that the bonus issue ratio will be adjusted after the stock split action.

A bonus issue can be announced by any listed company. The bonus is declared in a certain proportion only to the existing shareholders. The investor is not required to pay any extra money for these bonus shares. Meaning, bonuses are free of cost.

However, due to the bonus issue, the share price reduces in proportion to the number of bonus shares issued, while the per-share ratios also get lower.

How To Be Eligible For GTV Engineering's Bonus Issue, Stock Split?

To be eligible for both the bonus and the split of GTV, investors should ensure to hold their shares by the end of the record date. GTV has fixed Monday, July 28, as the record date to determine eligible shareholders. This is also the ex-date for the two corporate actions.

About GTV Engineering:

GTV has always been the first preferred supply chain partner of its customers since its inception in 1978, with a customer retention rate of 100 per cent.

As per the website, considering the growing domestic demand, as well as the fact that many of the international buyers are turning to India for steel fabrications, GTV is gearing up towards increasing its production capacity to take advantage of the lucrative growth opportunities, and is quite confident of being one of the leading contenders for high-value projects.

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